Azerbaijan and WindEurope Form Offshore Wind Pact

Business & Finance

March 5, 2024, by Adnan Memija

WindEurope and the Azerbaijan Renewable Energy Agency signed a Memorandum of Understanding (MoU) to advance the deployment of onshore and offshore wind energy in Azerbaijan and the wider Caspian Sea area.

Azerbaijan WindEurope — *Source: WindEurope*

By signing the memorandum WindEurope and the Azerbaijan Renewable Energy Agency pledge to cooperate in several different areas including the establishment of competition criteria which includes the use of qualitative criteria that do not just consider price but also the value added in areas such as biodiversity protection, cybersecurity, and job creation.

Additionally, the terms of the MoU recognise that maritime spatial planning and grid development are crucial for offshore wind development and that simplifying permitting processes will enable an efficient buildout of new wind farms.

The parties will also collaborate on sourcing wind energy components which applies especially to opportunities for local and European sourcing of wind energy components. The linking of European electricity off-takers to the wind energy generated in Azerbaijan to optimise the flow of electricity is another area on which the parties have agreed to cooperate.

The Government of Azerbaijan wants renewables to be 30 per cent of their total installed electricity capacity by 2030, said WindEurope. According to the association, they want to export much of their wind energy to Europe via a Caspian-EU Green Energy Corridor. The government already signed MoU with Georgia, Romania, and Hungary for a subsea cable under the Black Sea.

In 2022, Azerbaijan released its Offshore Wind Roadmap, in cooperation with the World Bank and the International Finance Corporation (IFC), which states the country has the potential to install 7 GW of offshore wind power by 2040 with the right long-term vision, infrastructure development, investment and policies.

According to the World Bank and ESMAP, of the 157 GW of offshore wind potential in Azerbaijan, 35 GW is suitable for fixed-bottom projects and 122 GW for floating wind.

As reported earlier, the State Oil Company of the Republic of Azerbaijan (SOCAR) and the UAE’s Masdar entered into a partnership on 15 January 2023 to develop offshore wind and green hydrogen projects totalling 2 GW in capacity.